Medical Applications for Cannabis Push Global Demand Ever Higher
NEW YORK, Feb. 14, 2019 /PRNewswire/ -- Many countries have legalized cannabis on some level, however, regulations regarding actually growing the plant are still largely enforced. These regulations are in turn causing shortages within many countries, which has prompted them to search for third-party cultivators and distributors elsewhere. Now, as a result, cultivators are beginning to lock in licenses and agreements to export cannabis internationally. The demand is mainly stemming from medical cannabis, however, regions like Canada are signing agreements for recreational cannabis imports as well. According to Verified Market Intelligence, the global cannabis market was valued at USD 42.2 Billion in 2017. By 2025, the market is projected to reach USD 466.81 Billion while growing at a CAGR of 35.3% during the forecast period from 2018 to 2025. Overall, industry growth is being driven by the widespread global movement for legalization of medical use cannabis. On the other hand, regions like the U.S. and Canada are prevailing in the recreational sector. Biome Grow Inc. (OTC: BIOIF) (CSE: BIO), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX:TGOD), Leafbuyer Technologies, Inc. (OTC: LBUY), Vivo Cannabis Inc. (OTC: VVCIF) (TSX-V: VIVO), Terra Tech Corp. (OTC: TRTC)
International demand is expected to grow even greater as the number of countries exploring the legalization of cannabis continues to increase. Countries such as Mexico, New Zealand, Italy, and South Africa are among many who are starting procedures to legalize cannabis. Likewise, the economic benefits of cannabis have caught the attention of large and recognizable global brands. Industries like that of alcohol and tobacco have already poured investments into the cannabis industry. "Certainly other countries will be watching Canada closely, looking to see what kind of outcomes will happen. It could be months or years though," said Patricia Erickson, Professor of sociology and criminology at the University of Toronto. "That's going to be the big driver for other countries — money."
Biome Grow Inc. (OTCQB: BIOIF) (CSE: BIO) also listed on the Canadian Securities Exchange under the ticker (CSE: BIO). Earlier this week the company announced, "a Memorandum of Understanding ("MOU"or the "Agreement") providing Biome with preferential access to a high quality and low cost supply of Cannabidiol ("CBD") concentrate from CBD Acres Manufacturer Inc. ("CBD Acres").
The MOU is for a period of five years pursuant to which Biome may acquire up to 20,000 kilograms per year of sun-grown, hemp-based CBD extract from CBD Acres using its unique Nano lipid, solventless extraction process.
CBD Acres is founded by Canadian hemp farming pioneer, Mark Gobuty, who is also the founder of the Peace Naturals Project, Canada's first Marijuana for Medical Purposes Regulations licensed cannabis grower. CBD Acres is currently working with 4,500 acres of hemp farmland in Canada, including 1,000 acres of organic grow, which it expects to produce volumes that are equivalent to a 180 million square foot indoor cannabis production facility under the Canadian Cannabis Act.
"Through this Agreement Biome is demonstrating a cannabis company can offer significant quantities of high-quality product at industry disrupting economics with a made in Canada product. This can also be accomplished without spending substantial capital to build internal production facilities. Moreover, Biome will now be in a position to supply both its domestic and international customers with affordable medicinal and therapeutic products based on CBD in the volumes that are required."
"CBD Acres is thrilled to have the visibility of a long-term partner for its bulk products business entering the market in the second half of 2019, and more importantly a strategic partner focused on commercialization in key medical-CBD markets, allowing CBD Acres to focus on growing and extraction innovation as well as its consumer products business," said CBD Acres CEO Mark Gobuty.
Biome is considered a "related party" to CBD Acres as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") on the basis that Jacob Capital Management Inc., a significant shareholder in the capital of the Company, is also a significant shareholder in the capital of CBD Acres. However, due to the service-type nature of the arrangement with no commitment or obligation for Biome to utilize the service provided by CBD Acres or to acquire an asset or assets from CBD Acres, the MOU is not considered to be a "related party transaction" as defined under MI 61-101."
The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX:TGOD) is a publicly traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. The Green Organic Dutchman Holdings Ltd. recently announced that it has secured a cannabis supply agreement with the Ontario Cannabis Retail Corporation. TGOD is the largest licensed producer of 100% certified organic cannabis in Canada. TGOD cannabis is certified by ECOCERT, one of the pre-eminent organic certification bodies in the world. Organic cannabis is grown in living soil without the use of synthetic fertilizers, pesticides or herbicides. The result is a cleaner, premium product for Canadian consumers across both medical and recreational uses. "Ontario has the largest population in Canada and is a critical component to TGOD's national recreational rollout," commented Brian Athaide, Director and Chief Executive Officer. "This represents the first of many provincial supply agreements planned for our premium organic product as our domestic facilities near completion and production increases throughout 2019."
Leafbuyer Technologies, Inc. (OTCQB: LBUY) is one of the most comprehensive online sources for cannabis deals and information. Leafbuyer Technologies, Inc. recently announced that the Company has expanded into the emerging Oklahoma medical cannabis market. Oklahoma voters passed medical marijuana legislation in June 2018. Patients can register for medical marijuana and be authorized for any condition a doctor deems appropriate. As of February 1, more than 30,000 patients have been approved. "We see major potential in the Oklahoma market to help boost the growth of our company," said Kurt Rossner, Chief Executive Officer of Leafbuyer. "Through marketing and advertising initiatives, we have nearly three dozen dispensaries utilizing our marketing services after just two weeks of in-state contact. Along with sales, we're focusing our efforts on broadcast and out of home marketing channels to help drive traffic to the site and, ultimately, put consumers inside our dispensary clients' businesses."
Vivo Cannabis Inc. (OTCQX: VVCIF) (TSX-VIVO) based in Napanee, Ontario, is recognized for trusted, high-quality products and services. VIVO Cannabis Inc. recently announced that the Company's subsidiary, ABcann Medicinals Inc., has received approval from Health Canada for its most recent license amendment request allowing for the sale of cannabis oil. The cannabis oil sales license allows the Company to significantly expand its product lines for medical cannabis patients and adult-use consumers. ABcann's high-quality oil products are expected to be a core component of the Beacon Medical™ and Lumina™ brands, in addition to the cannabis oil already offered by the Company's Canna Farms™ brand. "We believe that cannabis oil will be the preferred method of treatment for medical cannabis patients and adult-use consumers with specific wellness objectives," said Barry Fishman, Chief Executive Officer of VIVO. "The addition of cannabis oil products to our premium medical and adult-use brands will provide consumers with medical-grade products of the high quality VIVO customers have come to expect. Looking forward, the sales license is expected to accelerate product innovation, leading to a broader product offering for our customers."
Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Terra Tech Corp. recently announced that on November 2, 2018 it signed a non-binding letter of intent to merge with Golden Leaf Holdings Ltd., a cannabis company with cultivation, production and retail operations built around recognized brands. Under the terms of the letter of intent, a wholly owned subsidiary of Terra Tech will amalgamate with Golden Leaf, with the resulting amalgamated corporation being a wholly owned subsidiary of Terra Tech. Derek Peterson, Chief Executive Officer of Terra Tech, commented, "As new participants enter the cannabis industry the market is undergoing rapid consolidation. The companies that are vertically integrated with strong brands and multi-jurisdictional operations are best situated to achieve scale and retain market-leading positions. We are planning to merge with Golden Leaf's operations because its seed-to-sale business model is complementary to ours, encompassing both the Oregon and Canadian market which represent new markets for us, and touching Nevada where we are focused on gaining market share. Its 'Chalice Farms' retail dispensaries are well known and have an excellent reputation in Oregon, and the wholesale side of the business offers diverse, high quality cannabis products for all demographics, which are complementary to our existing wholesale product lines. This transaction, if completed, will create a combined company that will control 41 permits across cultivation, manufacturing, distribution and retail spanning Oregon, California and Nevada, in addition to 21 pending permit applications in multiple jurisdictions throughout the U.S."
Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia
Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz
Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz
Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/
FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.
For further information: